Zhitong Hong Kong Stock Exchange Unravels | AI Drives Motivation to Move High, Xiaopeng (09868) Robots Add Another Fire

[Anatomy Dashboard]

After yesterday's counterattack, the two markets continued to rise today. Both markets are opening high and moving higher, forcing the Hang Seng Index to rise 2.12%.

The government shutdown is very bad for Trump, because of course this account is on the administration's head. The Democratic Party won successively in local elections. In a hurry, Trump on Wednesday demanded that the Republican Party immediately end the lengthy debate process and immediately pass the spending bill to end the government shutdown. Overall, the probability of closing the doors is quite high, which is also a good thing for the stock market. As for the trial of Trump's tariff case, it will take at least a few months to come to an end. In some cases, time can be mediated.

Market sentiment is fueled by the AI sector. On Wednesday local time, Nvidia CEO Huang Renxun said in an interview that China will win the AI competition on the grounds of a more favorable regulatory environment and lower energy costs. This is regarded as Hwang In-hoon's most straightforward statement on the Sino-US AI competition so far. SK Hynix recently stated that it has completed price and quantity negotiations with Nvidia regarding the supply of next year's sixth-generation high-bandwidth memory (HBM4). The supply price of HBM4 this time will be more than 50% higher than the previous generation product (HBM3E). On the other hand, recently, some information about “data center construction and domestic chips” has also been circulating in the market, and domestic replacement logic continues to strengthen.

Huahong Semiconductor (01347)'s latest financial report is good: sales revenue for the third quarter reached a record high of US$635.2 million. Sales revenue for the fourth quarter is expected to be between US$650 million and US$660 million; gross margin is expected to be between 12% and 14%. Its 12-inch wafer business rose to 59.3% of total revenue, becoming the core engine driving the company's overall growth. In terms of capacity utilization, the company's 8-inch fab's capacity utilization rate is as high as 109.5%, and it continues to be overloaded. This shows that the company's market demand in the specialty process field is still full. It surged more than 9% today, and SMIC (00981), which was mentioned in the sector focus yesterday, also rose more than 7%.

The AI application side has also taken action. Jingtai Holdings (02228) announced that Shanghai Alexi Biotechnology Co., Ltd., a wholly-owned subsidiary of Jingtai, a leading global AI drug discovery company, and Eli Lilly have reached a platform-based strategic cooperation to accelerate the discovery and development of bispecific antibodies to treat various diseases. According to the terms of cooperation, Eli Lilly can nominate target pairs for bispecific antibody design, and can also obtain a license to use the Ailux Patent Platform for internal use. Today it's up 8%.

Driven by significant growth in data center AIDC Capex, orders for large gas turbines in North America have been scheduled to reach 2030, and orders for small gas turbines have doubled in 2025. On November 5, Ceres Power announced the signing of a solid oxide fuel cell (SOFC) manufacturing license agreement with Weichai Power (02338), further strengthening the existing cooperative relationship between the two sides. Weichai will establish a new plant to produce batteries and electric stacks for the data center, commercial and industrial electricity markets. It is expected that related revenue will be confirmed in the 2026 fiscal year. Today it surged more than 20%. Weisheng Holdings (03393) Since FY24, data center customers have promoted the expansion of the company's intelligent power distribution business.

The plant in Johor Bahru, Malaysia was put into operation in the first half of this year, which will help the company further expand its overseas intelligent power distribution business. During the opening ceremony of this factory, the company signed a strategic cooperation agreement with DayOne to carry out in-depth collaboration in the data center field.

Rio Tinto, Australia's largest aluminum smelter, said that the Tomago aluminum smelter is considering ceasing operations (accounting for about 40% of Australia's annual aluminum production); the seller said that electrolytic aluminum needs a cumulative increase of 3.9% in January-September, better than market expectations. Profits continued to rise steadily at a high level, further improving the profits of aluminum companies. This is a dual benefit on the supply side and profit side. China Aluminum (02600) and China Hongqiao (01378) both rose by more than 10%, with China's Hongqiao (01378) reaching record highs.

Other resource categories were driven. Luoyang Molybdenum (03993), a copper-cobalt resource, rose nearly 6%, and Jiaxin International Resources (03858), a tungsten ore resource, rose more than 3%; in November, Zhitong Jinyu Tianqi Lithium (09696) and Ganfeng Lithium (01772) all rose more than 5% for lithium mines.

According to Tesla's official website, the company's annual shareholders' meeting will begin at 3 p.m. US China time on Thursday, which is equivalent to 5 a.m. on Friday, Beijing time. The conference drew a lot of attention because it will vote on Musk's trillion-dollar salary package. Judging from the current situation, the market believes that the probability of getting approved is too high. As a result, Sanhua Intelligent Control (02050), which has a T-chain concept, was boosted by more than 7% by capital.

In addition, the robot also has a catalyst: on November 5, at the Xiaopeng (09868) Science Day press conference, Xiaopeng unveiled a new generation of IRON to complete the “cat step” display with a highly restored human posture. The company expects commercialization to begin next year and aims to mass-produce advanced humanoid robots by the end of 2026. More and more robots are entering mass production, which is driving the industry.

Lansi Technology (06613): In 2025, humanoid robots are expected to ship more than 3,000 units and more than 10,000 four-legged robot dogs. The overall machine assembly scale is stable at the top of the industry, making it one of the world's largest embedded intelligent hardware manufacturing platforms. Recently, Yuejiang Robotics placed an assembly order for 10,000 four-legged robot dogs to Lansi Technology. This cooperation shows Lansi's comprehensive strength in large-scale mass production in the field of intelligent machine manufacturing. Today, it rose more than 6%; Johnson Electric Holdings (00179) and Shanghai Electromechanical established two equity joint ventures to design and manufacture humanoid robot parts in China. Meanwhile, in May 2025, the company launched a new DCP series liquid cooling pump, which also has an AI concept, and is up nearly 7% today.

I mentioned the rebound in gold stocks yesterday. Today's new gold stock Zijin Gold International (02259) performed well because the company's average procurement cost of gold resources was 61.3 US dollars per ounce, while the industry average from 2019 to 24 was 92.9 US dollars per ounce. The company has gold projects in South America, Australia, Africa and Central Asia, and its gold reserves and production ranked 9th and 11th in the global mining industry last year. Today it's up almost 9%.

Cathay Pacific (00293) announced that it will sign a repurchase agreement with Qatar Airways to repurchase all Cathay Pacific shares held by Qatar Airways, accounting for about 9.57% of the company's total issued shares, at a price of 6.969 billion yuan. Since the purchase price of HK$10.8374 was discounted by about 4% from the closing price before the announcement, the price was reasonable for Cathay Pacific. However, after all, it is necessary to spend nearly 7 billion dollars to collect shares, which is a test for the financial situation. The repurchase of shares this time is treated as treasury stock, which would be beneficial if cancelled. It would be nice if other agencies charge a higher price. Note that Air China (00753) is its second-largest shareholder. Cathay Pacific (00293) rose nearly 4%.

On the morning of November 6, while listening to a report on the construction of the Hainan Free Trade Port in Sanya City, Hainan Province, the leaders said: earnestly study and implement the spirit of the Fourth Plenary Session of the 20th CPC Central Committee and build the Hainan Free Trade Port to a high standard. China Free Trade (01880) rose nearly 4%, followed by Meilan Airport (00357).

[Section Focus]

The 4th China Nuclear Energy High Quality Development Conference and Shenzhen International Nuclear Energy Industry Innovation Expo will be held at the Shenzhen Convention and Exhibition Center from November 12 to 14, 2025.

The exhibition will focus on showcasing everything from innovative breakthroughs in third-generation and fourth-generation nuclear power technology to cutting-edge exploration of nuclear fusion, and comprehensive applications of nuclear technology in the fields of medicine, agriculture, and environmental protection. Companies from all parts of the nuclear energy industry chain will be showcased, which can be called a “family portrait” of nuclear energy technology.

Nuclear fusion is in line with the country's “15th Five-Year Plan” and is the ultimate energy source for the future. Major Hong Kong stocks include Tiangong International (00826) and Shanghai Electric (02727).

[Individual Stock Mining]

Jiantao Laminated Board (01888): Price increases for copper-clad plates drive performance growth and the PCB industry chain is booming

Recently, there has been a wave of price increases for copper-clad panels. Jiantao Laminate achieved a turnover of HK$9.588 billion in the first half of this year, an increase of 11% over the previous year; net profit of HK$933 million, an increase of 28% over the previous year.

Comment: The rapid development of AI and strong demand for emerging electronic products around the AI concept are driving the increase in demand for the Group's copper-clad panel products and printed circuit board products. As a leader in traditional copper-clad plate integration, the company has a high-end layout, and is the most advanced in material-side special electronic cloth. The company's first low dielectric electronic yarn kiln has already been announced and put into operation, and the progress of the previous step in the technology path is relatively leading in China.

The company announced that production capacity for second-generation low-dielectric low-expansion fiber cloth, quartz cloth, etc. is expected to be gradually launched in 25H2 and '26. Special electronic cloth is in a boom phase where supply and demand are tight along with the upgrade of copper-clad panels. The company's traditional electronic cloth production capacity is also in a leading position. It has a production capacity of 200,000 tons of electronic yarn, which is estimated to correspond to 7-800 million meters/year of traditional electronic cloth production capacity. The price trend of traditional electronic cloth is also currently in an upward cycle.

In terms of high-end products, Jiantao Laminated Board has successfully developed HVLP3 copper foil and ultra-thin VLP copper foil for IC packaging boards. High-end copper foil has been certified to enter many of the world's leading tier 1 and communication terminal customers; the first low dk glass yarn kiln was put into operation in 2025H1, and 2025H2 is expected to add 3 additional kilns, which have the capacity to produce second-generation glass yarn; 6 more high-end kilns are expected to be put into operation in 2026 to produce low dielectric low expansion and quartz glass yarn. 2025H2 has taken the lead in raising the price of copper clad plates, and strong PCB demand may support price rigidity. Product upgrades and price increases for copper clad plates are expected to contribute to the company's performance growth potential.